Dismissed¶40

C Veerabhadra Babu v. the State of Karnataka

Constitutional validity – Karnataka Co-operative Societies Act, 1959 – Section 18B(i) inserted by Act No.35 of 2014

Karnataka HC15 Jan 2025WP/23008/2024

Download

Case brief

AI extract

What is this about?

Single Judge (K.S. Hemalekha, J.), Karnataka HC, 15.01.2025 - WP 23008/2024 (CS-RES) - challenge to constitutionality of S.18B(i) KCS Act 1959 (Act 35 of 2014) and to KMF communication dt. 17.08.2024 - dismissed as devoid of merits in view of Division Bench ruling in Mohan Reddy (WP 2710/2020) upholding S.18B/S.31 vis-a-vis Art.19(1)(c).

What did the court decide?

The validity of Section 18(B) of the KCS Act, 1959 having already been upheld by the Division Bench of this Court in Mohan Reddy (paras 66 and 90), this Court held the present writ petition challenging the same provision to be devoid of merits and dismissed it. ¶40

C Veerabhadra Babu Vs the State of Karnataka — Writ and Judicial Review | Karnataka HC (2025)

¶1

1 - NC: 2025:KHC:1670 WP No. 23008 of 2024

¶2

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15^TH DAY OF JANUARY, 2025 BEFORE

¶3

THE HON'BLE MRS JUSTICE K.S. HEMALEKHA WRIT PETITION NO.23008 OF 2024 (CS-RES)

¶4

BETWEEN:

¶5

C. VEERABHADRA BABU S/O. CHALLURAIAH AGED ABOUT 63 YEARS, “SRIRANGA” HPD ROAD THAGARAJ NAGAR, CHALLAKERE TALUK, CHIDRADURGA DISTRICT – 577522. ... PETITIONER

¶6

(BY SRI SANDESH T.B., ADVOCATE)

¶7

AND:

¶8

THE STATE OF KARNATAKA BY ITS SECRETARY DEPARTMENT OF CO-OPERATION, GOVERNMENT OF KARNATAKA, M.S. BUILDING, BANGALORE-560001.

¶9

YADALAGATTE MILK PRODUCERS

¶10

Digitally signed by MAHALAKSHMI B M Location: HIGH COURT OF KARNATAKA

¶11

CO-OPERATIVE SOCIETY LTD., YADALAGATTE VILLAGE, CHALLAKERE TALUK, CHITRADURGA DISTRICT-577522

¶12

REPRESENTED BY ITS SECRETARY.

¶13

SHIVAMOGGA, DAWANAGERE AND CHITRADURGA DISTRICT MILK PRODUCERS SOCIETIES UNION LTD., MACHENAHALLI, NIDIGE POST, SHIVAMOGGA-577222. REP. BY ITS MANAGING DIRECTOR.

¶14

KARANATAKA CO-OPERATIVE MILK PRODUCERS FEDERATION LTD., KMF COMPLEX, PB NO.2915 DR. M.H. MARIGOWDA ROAD, BENGALURU-560029.

¶15

¶16

NC: 2025:KHC:1670 WP No. 23008 of 2024

¶17

MANAGING DIRECTOR. KARNATAKA CO-OPERATIVE SOCIETIES REGISTRATION ACT, 1956 – R-2 TO R-4.

¶18

... RESPONDENTS

¶19

(BY SRI SIDHARTH BABU RAO, AGA FOR R-1; SRI GOUREESH S. GOUDAR, ADVOCATE FOR R-3; SRI SUMANTH L. BHARADWAJ, ADVOCATE FOR R-4; SRI PRUTHVI WODEYAR FOR IMPLEADING APPLICANTS ON I.A. 2/2024)

¶20

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASHING THE COMMUNICATION LETTER DATED 17.08.2024 BEARING NO.2433/ADMINISTRATIVE-01/2024 PASSED BY RESPONDENT NO.4 VIDE ANNEXURE-D; TO STRIKE DOWN SECTION 18B(i) OF KARNATAKA CO-OPERATIVE SOCIETIES ACT NO.35 OF 2014 BY DECLARING THE SAME AS ILLEGAL AND ARBITRARY AND UNCONSTITUTIONAL.

¶21

THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

¶22

CORAM: HON'BLE MRS JUSTICE K.S. HEMALEKHA

¶23

ORAL ORDER

¶24

The petitioner has sought for the following reliefs:

¶25

(a) Issue a Writ of certiorari quashing the communication letter dated 17.08.2024 bearing No.2433/Administrative-01/2024 passed by respondent No.4 vide Annexure-D.

¶26

(b) To strike down Section 18B(i) of Karnataka Co-operative Societies Act, 1959, inserted by the Act No.35 of 2014 by declaring the same as illegal and arbitrary and unconstitutional.

¶27

(c) Issue any writ or order or direction as this Hon’ble court deems fit under the

¶28

3 - NC: 2025:KHC:1670 WP No. 23008 of 2024

¶29

circumstances of the case, in the interest of justice and equity.

¶30

The petitioner has challenged the constitutional

¶31

validity of Section 18B(i) of the Karnataka Co-Operative Societies Act, 1959 (‘the KCS Act, 1959’ for short) declaring the same as illegal, arbitrary and unconstitutional.

¶32

The Division Bench of this Court in the case of Sri. H.S. Mohan Reddy Vs. The State of Karnataka, Department of Co-Operation and others¹ ( Mohan Reddy ) has upheld the validity of Section 18(B) of the KCS Act, 1959 and has held at paragraph Nos.66 and 90 as under:

¶33

“66. Section 18B of the A ct, is a provision, which comes into play in the event of a situation, which is quite frequent and common in the working of Co-operative Societies in the pyramidical structure. The provision fundamentally ensures that the pyramidical structure that is envisaged for the better management of the entire chain of Co-

¶34

1 WP No.2710/2020 D.D. 19.04.2022

¶35

¶36

NC: 2025:KHC:1670 WP No. 23008 of 2024

¶37

operative Societies is not polluted and a provision which is designed to provide for a democratic, autonomous and professional management of a Cooperative Society cannot be held to be offensive of any of the fundamental rights which are provided in Part.

¶38

90. We, thus hold that Section 18B and Section 31 of the KCS Act are not violative of Article 19(1)(c) of the Constitution and are legal and valid.”

¶39